BMW SWOT ANALYSIS
This articles will discuss the detailed SWOT analysis of BMW which has been known as reputable brand name in the Automobile Industry since ages.
BMW is a well known automobile and motorcycle manufacturer company which is based in Munich, Germany. The company sells brands like BMW, Rolls- Royce, Mini cars, BMW Mottorad and Husqvarna Motorcycles. A SWOT Analysis of BMW is prepared to highlight the strengths, weaknesses, opportunities and threats of the company which can be useful to understand the existing market position and potential risk in the future.
Following is the SWOT analysis of BMW described in detail:
Strengths
• BMW has a strong brand image; as it is considered to be the third most valuable automotive industry in the world valued at $29 billion. In 2012, Forbes listed BMW as one of the most reputable business in the world. BMW has maintained its brand image over the years through its intensive marketing strategies .Also; its marketing executives have been consistently successful in creating a positive perception in the minds of a particular market segment.
• A strong leadership style; BMW’s Chairman of the Supervisory Board Joachim Milberg and Chairman of the Board of Management Norbert Reithofer have made a huge contribution to gain competitive advantage and maintained a strong legacy and market presence all across the globe.
• Works on constant product diversification strategy by producing products like Mini, Husqvarna etc.
• Diversified portfolio that includes Sport cars and Luxury Sedans.
• Strong financial position of the company has achieved revenue of around EURO 7.8 billion in 2012.
• Excellent marketing promotion of its luxury products.
• Highly skilled workforce nearly to 100,000 employees.
Weaknesses
• Tough competition with companies like Toyota, General Motors, Honda and Volkswagen that shows a constant fight to maintain its market share.
• Too weak brand portfolio; the company only caters luxury market segment for elite class. This can create a negative impact on the future growth of the company.
• Highly priced products.
• Few acquisitions and strategic partnerships.
Opportunities
• Strong brand image can help to acquire new market segments.
• Increase in fuel prices can expand into large markets for BMW hybrid and hydrogen cars especially for consumers who shift towards cheaper fuel types.
• In the near future, consumers will look forward to buy green vehicles like hydrogen fueled cars that emit less or no CO2 at all.
• More preferences of customers to buy international brand.
• Further expansion of distribution and service networks in large countries.
Threats
• A pool of competitive products who are offering similar needs at lower prices than BMW.
• Decrease in fuel costs can also be a threat which can make hybrid and hydrogen fueled cars less in demand.
• Product innovation by other competitors in the automobile sector.
• Intense competition in the developed countries where the market is saturated for luxury cars.
• Increase in EURO exchange rate; as BMW earns most part of its profit outside the EURO zone. Therefore, if the exchange rate fluctuates it can threaten BMW’s market share.
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